What's In A Name?

There is a two-fold reason for why the share price is where it is. The first reason relates to PV-10 being a local agent. The second relates to there being no "name" in the stock.

What's in a name? While there are or may be several large hedge fund or hedge fund-related shareholders like AQR (an AQR fund) or Revelation, there is no serious life science name in the stock.

Despite having a Orbimed employee on the advisory board (David Darst), this well known life sciences firm and fund does not own any shares. It would seem that Orbimed, like other very serious life sciences investors, while acknowledging that PV-10 works systemically, wants to see Provectus obtain the SPA for the pivotal MM Phase 3 trial and see additional information from Moffitt before they jump into the stock. At the appropriate time, perhaps soon, they and others will rush for the door, most likely at or around the same time, hoping to get into the theater and grab seats.

They'll find out that a good number of seats have been taken, and that what remain are somewhat scarce. I speculate, together with some other large shareholders, that less than 10 groups or syndicates of long-time, patient and knowledgeable [of the end game process and outcome] shareholders -- both management and investors -- own at least 60% of the float. The number could be as high as 70%. These folks won't sell easily or, in some cases, at all. Without sufficient float, acquiring meaningful share positions will prove very difficult.

Now, a name doesn't have to be an investor. It also can be a strategic investor or corporation through either a minority investment in Provectus and/or a license transaction (e.g., dermatology, HCC & China, MM & Australasia, HCC & Japan, India, etc.).

That is why this period of time, now and through the second half of the year, should be the most dramatically positive for the share price in the company's history. In addition to the SPA and Moffitt, as I blogged earlier about, one or more deal/license transactions add another dimension to the outcome.

One transaction should create a cascading effect that substantially increases Big Pharma's interest in Provectus to further partner with the company and, ultimately, acquire it.